Ahead of Market: 10 things that will decide stock market action on Friday
Sensex and Nifty declined for a fourth straight session as surging crude oil prices and escalating US-Iran tensions dampened investor sentiment. Analysts flagged rising inflation risks, bearish technical indicators and continued market volatility,...
By Debaroti Adhikary, ETMarkets.com |
The Indian stock market extended losses for the fourth session on Thursday, with Sensex and Nifty closing lower as oil prices soared after the US military completed its 12th successive night of strikes on Iran.
Sensex declined around 364 points to close at 76,391, while Nifty 50 fell nearly 127 points to end Thursday's session below 23,870. Broader markets also extended losses, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 1%.
Here's how analysts read the market pulse
With crude oil prices approaching $100 per barrel amid concerns over further disruptions to global energy supplies, investor sentiment remained subdued as markets reassessed inflation risks and corporate margins, said Vinod Nair, Head of Research of Geojit Investments. He noted that the recent macroeconomic indicators suggest that prolonged geopolitical tensions are increasingly filtering into the domestic economy, reflected in rising WPI and a moderation in business activity.
"Elevated energy prices have also reinforced expectations of a higher-for-longer global interest rate environment, dampening risk appetite toward EMs. Selling pressure was broad-based across sectors; however, auto stocks outperformed on the back of strong quarterly earnings, highlighting that despite prevailing market volatility, investors continue to favour businesses demonstrating resilient earnings growth, healthy demand trends and stronger visibility on future performance," he added.
U.S. stock indexes hit multi-week lows on Thursday, as concerns over heavy AI spending resurfaced after the first batch of Big Tech earnings, while oil prices touched the $100-a-barrel mark following the widening Middle East conflict.
Second-quarter results from Alphabet and Tesla , the first of the so-called "Magnificent Seven" megacap companies to report this season, failed to impress investors.
Geopolitical concerns added to the pressure. After months of investor focus on the Strait of Hormuz, attention has shifted to the Red Sea, where Iranian-aligned Houthis, who control areas near the Bab el-Mandeb strait, have opened a new front in the Middle East crisis.
European markets
European share markets also fell after an earnings miss from chipmaker STMicroelectronics sent its shares tumbling 18%. The pan-European STOXX 600 index fell 1.1%.
Tech view
Nifty 50 has broken down below the upward consolidation on the daily chart, suggesting a rise in bearishness in the market, said Rupak De, Senior Technical Analyst at LKP Securities. He added that the index has fallen below the critical short-term moving average.
"The RSI indicator shows a bearish crossover and is falling. Sentiment looks negative, and the market might continue to remain weak in the near term. On the lower end, the index might fall towards 23,600 or even lower in the near term. On the higher end, 24,000 might remain a resistance for the next few days," De said.
Most active stocks in terms of turnover
Oracle (Rs 3,639 crore), HDFC Bank (Rs 2,428 crore), Eternal (Rs 1,878 crore), ICICI Bank (Rs 1,781 crore), RIL (Rs 1,605 crore), Infosys (Rs 1,442 crore) and HEG (Rs 1,198 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 35.57 crore), NTPC Green Energy (Traded shares: 10.76 crore), Ola Electric (Traded shares: 7.53 crore), Eternal (Traded shares: 6.47 crore), Yes Bank (Traded shares: 5.89 crore), Suzlon Energy (Traded shares: 4.73 crore) and Bandhan Bank (Traded shares: 4.47 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
NTPC Green Energy, Aditya Infotech, Graphite India, HEG, Hero MotoCorp, C.E. Info Systems and Nuvama Wealth Management were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Lloyds Metals, Bajaj Auto, Bosch, Manappuram Finance, TVS Motor, Lenskart Solutions and Chennai Petro.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Mahindra CIE, SRF, Adani Green, IndusInd Bank, Ami Organics, ITD Cementation and HFCL.
52-week low
Among the ones which hit their 52-week lows on NSE included IndiaMART, Dr. Reddys, Tata Elxsi, IRFC, IRCTC and RVNL.
Sentiment meter favours bears
Out of the 3,387 stocks that traded on the NSE on July 23, Thursday, 1,155 stocks witnessed advances, 2,099 saw declines while 133 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Sensex declined around 364 points to close at 76,391, while Nifty 50 fell nearly 127 points to end Thursday's session below 23,870. Broader markets also extended losses, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 1%.
Here's how analysts read the market pulse
With crude oil prices approaching $100 per barrel amid concerns over further disruptions to global energy supplies, investor sentiment remained subdued as markets reassessed inflation risks and corporate margins, said Vinod Nair, Head of Research of Geojit Investments. He noted that the recent macroeconomic indicators suggest that prolonged geopolitical tensions are increasingly filtering into the domestic economy, reflected in rising WPI and a moderation in business activity.
"Elevated energy prices have also reinforced expectations of a higher-for-longer global interest rate environment, dampening risk appetite toward EMs. Selling pressure was broad-based across sectors; however, auto stocks outperformed on the back of strong quarterly earnings, highlighting that despite prevailing market volatility, investors continue to favour businesses demonstrating resilient earnings growth, healthy demand trends and stronger visibility on future performance," he added.
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US stocksU.S. stock indexes hit multi-week lows on Thursday, as concerns over heavy AI spending resurfaced after the first batch of Big Tech earnings, while oil prices touched the $100-a-barrel mark following the widening Middle East conflict.
Second-quarter results from Alphabet and Tesla , the first of the so-called "Magnificent Seven" megacap companies to report this season, failed to impress investors.
Geopolitical concerns added to the pressure. After months of investor focus on the Strait of Hormuz, attention has shifted to the Red Sea, where Iranian-aligned Houthis, who control areas near the Bab el-Mandeb strait, have opened a new front in the Middle East crisis.
European markets
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European share markets also fell after an earnings miss from chipmaker STMicroelectronics sent its shares tumbling 18%. The pan-European STOXX 600 index fell 1.1%.
Tech view
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Nifty 50 has broken down below the upward consolidation on the daily chart, suggesting a rise in bearishness in the market, said Rupak De, Senior Technical Analyst at LKP Securities. He added that the index has fallen below the critical short-term moving average.
"The RSI indicator shows a bearish crossover and is falling. Sentiment looks negative, and the market might continue to remain weak in the near term. On the lower end, the index might fall towards 23,600 or even lower in the near term. On the higher end, 24,000 might remain a resistance for the next few days," De said.
Most active stocks in terms of turnover
Oracle (Rs 3,639 crore), HDFC Bank (Rs 2,428 crore), Eternal (Rs 1,878 crore), ICICI Bank (Rs 1,781 crore), RIL (Rs 1,605 crore), Infosys (Rs 1,442 crore) and HEG (Rs 1,198 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 35.57 crore), NTPC Green Energy (Traded shares: 10.76 crore), Ola Electric (Traded shares: 7.53 crore), Eternal (Traded shares: 6.47 crore), Yes Bank (Traded shares: 5.89 crore), Suzlon Energy (Traded shares: 4.73 crore) and Bandhan Bank (Traded shares: 4.47 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
NTPC Green Energy, Aditya Infotech, Graphite India, HEG, Hero MotoCorp, C.E. Info Systems and Nuvama Wealth Management were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Lloyds Metals, Bajaj Auto, Bosch, Manappuram Finance, TVS Motor, Lenskart Solutions and Chennai Petro.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Mahindra CIE, SRF, Adani Green, IndusInd Bank, Ami Organics, ITD Cementation and HFCL.
52-week low
Among the ones which hit their 52-week lows on NSE included IndiaMART, Dr. Reddys, Tata Elxsi, IRFC, IRCTC and RVNL.
Sentiment meter favours bears
Out of the 3,387 stocks that traded on the NSE on July 23, Thursday, 1,155 stocks witnessed advances, 2,099 saw declines while 133 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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